Collections:

STUDENTS WILL

Demonstrate an understanding of goods, services, and specialization by completing the activities

Utilize information to make decisions.

Define opportunity cost as the most valued alternative that is given up when a choice is made.

Define scarcity as occurring when there are not resources (goods and services) to meet the demand.

Define wants as goods and services people would like to purchase and needs as things necessary for survival.

Define incentives as rewards or penalties that influence the choices and behavior of people.

Define specialization as being an expert in one job, product, or service.

INTRODUCTION

The printer’s errand boy, Ethan, knows that Boston’s 18th Century merchants work hard to provide the growing city with its many goods and services. He also knows that they have many problems and must make choices. If the merchants make the choice to throw the highly-taxed tea into the harbor, will this cause an unsolvable scarcity situation? Will it be possible to meet the wants of the Boston citizen? The solutions to these problems have many possible outcomes as each merchant has his own incentives for dealing with this unique and history making situation. Each time a choice is made an opportunity cost isincurred. Opportunity cost is the next best alternative that is given up when a choice is made. This lesson, based on the picture book “Colonial Voices Hear Them Speak” by Kay Winters, allows the reader to visit the past and discover the while goods and services may have changed, the concepts of opportunity cost, scarcity, incentives, and wants have remained a constant.